| Couple things: 1) The Chinese stock index (Shanghai Composite) is not a very accurate indicator of what's going on in the market. The index is heavily weighted on ICBC, BOC and other bank stocks. Those bank stocks have big market cap or the float is not necessarily big (e.g., ICBC, BOC). In other words, people can buy or sell those stocks to manipulate the index. 2) the Bubble: the bubble is there. You know it, I know it, the grandma sits at the stock exchange knows it. But bubble will usually last longer than people thought. Some examples: the stock bubble in 1990s in the US, the housing bubble from 2000 to 2005 in the US... |
Chinese Stock Market is More Crazy